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Found this error logged in the application log of a Windows 7 32-bit computer. Messages was also logged with warning 4106, Group Policy Scheduled Tasks.
Another symptom found was that GPP scheduled tasks were not being pushed to the client, even though folder permissions for the %systemroot%\system32\Tasks and subfolder was set properly.
Solution was to apply MS hotfix 976399. After that error was not logged and scheduled tasks were successfully pushed out by GPP.